Agency Information Collection Activities; Proposed Collection; Comment Request, 70347-70354 [E8-27534]
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Federal Register / Vol. 73, No. 225 / Thursday, November 20, 2008 / Notices
FEDERAL RESERVE SYSTEM
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Formations of, Acquisitions by, and
Mergers of Bank Holding Companies
The companies listed in this notice
have applied to the Board for approval,
pursuant to the Bank Holding Company
Act of 1956 (12 U.S.C. 1841 et seq.)
(BHC Act), Regulation Y (12 CFR Part
225), and all other applicable statutes
and regulations to become a bank
holding company and/or to acquire the
assets or the ownership of, control of, or
the power to vote shares of a bank or
bank holding company and all of the
banks and nonbanking companies
owned by the bank holding company,
including the companies listed below.
The applications listed below, as well
as other related filings required by the
Board, are available for immediate
inspection at the Federal Reserve Bank
indicated. The applications also will be
available for inspection at the offices of
the Board of Governors. Interested
persons may express their views in
writing on the standards enumerated in
the BHC Act (12 U.S.C. 1842(c)). If the
proposal also involves the acquisition of
a nonbanking company, the review also
includes whether the acquisition of the
nonbanking company complies with the
standards in section 4 of the BHC Act
(12 U.S.C. 1843). Unless otherwise
noted, nonbanking activities will be
conducted throughout the United States.
Additional information on all bank
holding companies may be obtained
from the National Information Center
website at www.ffiec.gov/nic/.
Unless otherwise noted, comments
regarding each of these applications
must be received at the Reserve Bank
indicated or the offices of the Board of
Governors not later than December 15,
2008.
A. Federal Reserve Bank of San
Francisco (Kenneth Binning, Vice
President, Applications and
Enforcement) 101 Market Street, San
Francisco, California 94105–1579:
1. Carpenter Fund Manager GP LLC,
Carpenter Fund Management Company
LLC, Carpenter Community Bancfund
L.P., Carpenter Community Bancfund–A
L.P., Carpenter Community Bancfund–
CA L.P., CCFW, Inc. (dba Carpenter &
Company), and SCJ, Inc., all of Irvine,
California, to acquire PB Holdings, Inc.,
Wilmington, Delaware, and thereby
indirectly acquire at least 54 percent of
Plaza Bank, Irvine, California. In
addition, PB Holdings, Inc.,
Wilmington, Delaware, also has applied
to become a bank holding company by
acquiring at least 54 percent of the
voting shares of Plaza Bank, Irvine,
California.
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Board of Governors of the Federal Reserve
System, November 17, 2008.
Robert deV. Frierson,
Deputy Secretary of the Board.
[FR Doc. E8–27584 Filed 11–19–08; 8:45 am]
BILLING CODE 6210–01–S
FEDERAL TRADE COMMISSION
Agency Information Collection
Activities; Proposed Collection;
Comment Request
Federal Trade Commission
(‘‘FTC’’ or ‘‘Commission’’).
ACTION: Notice.
AGENCY:
SUMMARY: The information collection
requirements described below will be
submitted to the Office of Management
and Budget (‘‘OMB’’) for review, as
required by the Paperwork Reduction
Act (‘‘PRA’’). The FTC is seeking public
comments on its proposal to extend
through March 31, 2012 the current PRA
clearances for information collection
requirements contained in four
consumer financial regulations
promulgated by the Federal Reserve
Board and enforced by the Commission.
Those clearances expire on March 31,
2009.
Comments must be received on
or before January 20, 2009.
ADDRESSES: Interested parties are
invited to submit written comments
electronically or in paper form.
Comments should refer to ‘‘Regs BEMZ,
PRA Comment, FTC File No. P084812’’
to facilitate the organization of
comments. Please note that comments
will be placed on the public record of
this proceeding—including on the
publicly accessible FTC website, at
(https://www/ftc.gov/os/
publiccomments.shtm) — and therefore
should not include any sensitive or
confidential information. In particular,
comments should not include any
sensitive personal information, such as
an individual’s Social Security Number;
date of birth; driver’s license number or
other state identification number, or
foreign country equivalent; passport
number; financial account number; or
credit or debit card number. Comments
also should not include any sensitive
health information, such as medical
records or other individually
identifiable health information. In
addition, comments should not include
any ‘‘[t]rade secrets and commercial or
financial information obtained from a
person and privileged or confidential
. . .,’’ as provided in Section 6(f) of the
FTC Act, 15 U.S.C. 46(f), and FTC Rule
4.10(a)(2), 16 CFR 4.10(a)(2). Comments
DATES:
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70347
containing material for which
confidential treatment is requested must
be filed in paper form, must be clearly
labeled ‘‘Confidential,’’ and must
comply with FTC Rule 4.9(c).1
Because paper mail addressed to the
FTC is subject to delay to heightened
security screening, please consider
submitting your comments in electronic
form. Comments filed in electronic form
should be submitted by using the
following weblink: (https://
secure.commentworks.com/ftcRegsBEMZ) (and following the
instructions on the web-based form). To
ensure that the Commission considers
an electronic comment, you must file it
on the web-based form at the weblink
(https://secure.commentworks.com/ftcRegsBEMZ). If this Notice appears at
(https://www.regulations.gov/search/
index.jsp), you may also file an
electronic comment through that
website. The Commission will consider
all comments that regulations.gov
forwards to it.
A comment filed in paper form
should include the ‘‘Regs BEMZ, PRA
Comment, FTC File No. P084812‘‘
reference both in the text and on the
envelope, and should be mailed or
delivered to the following address:
Federal Trade Commission, Office of the
Secretary, Room H-135 (Annex J), 600
Pennsylvania Avenue NW, Washington,
DC 20580. The FTC is requesting that
any comment filed in paper form be sent
by courier or overnight service, if
possible, because U.S. postal mail in the
Washington area and at the Commission
is subject to delay due to heightened
security precautions.
The FTC Act and other laws the
Commission administers permit the
collection of public comments to
consider and use in this proceeding as
appropriate. The Commission will
consider all timely and responsive
public comments that it receives,
whether filed in paper or electronic
form. Comments received will be
available to the public on the FTC
website, to the extent practicable, at
(https://www.ftc.gov/os/
publiccomments.shtm). As a matter of
discretion, the Commission makes every
effort to remove home contact
information for individuals from the
public comments it receives before
placing those comments on the FTC
1 FTC Rule 4.2(d), 16 CFR 4.2(d). The comment
must be accompanied by an explicit request for
confidential treatment, including the factual and
legal basis for the request, and must identify the
specific portions of the comment to be withheld
from the public record. The request will be granted
or denied by the Commission’s General Counsel,
consistent with applicable law and the public
interest. See FTC Rule 4.9(c), 16 CFR 4.9(c).
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Federal Register / Vol. 73, No. 225 / Thursday, November 20, 2008 / Notices
website. More information, including
routine uses permitted by the Privacy
Act, may be found in the FTC’s privacy
policy, at (https://www.ftc.gov/ftc/
privacy.shtm).
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FOR FURTHER INFORMATION CONTACT:
Requests for additional information or
copies of the proposed information
requirements should be addressed to
Carole Reynolds or James Chen,
Attorneys, Division of Financial
Practices, Bureau of Consumer
Protection, Federal Trade Commission,
600 Pennsylvania Ave., N.W.,
Washington, D.C. 20580, (202) 326-3230
or (202) 326-2659.
SUPPLEMENTARY INFORMATION: The four
regulations covered by this notice are:
(1) Regulations promulgated under
The Equal Credit Opportunity Act, 15
U.S.C. 1691 et seq. (‘‘ECOA’’)
(‘‘Regulation B’’) (OMB Control Number:
3084-0087);
(2) Regulations promulgated under
The Electronic Fund Transfer Act, 15
U.S.C. 1693 et seq. (‘‘EFTA’’)
(‘‘Regulation E’’) (OMB Control Number:
3084-0085);
(3) Regulations promulgated under
The Consumer Leasing Act, 15 U.S.C.
1667 et seq., (‘‘CLA’’) (‘‘Regulation M’’)
(OMB Control Number: 3084-0086); and
(4) Regulations promulgated under
The Truth-In-Lending Act, 15 U.S.C.
1601 et seq. (‘‘TILA’’) (‘‘Regulation Z’’)
(OMB Control Number: 3084-0088).
Under the PRA, 44 U.S.C. 3501-3521,
federal agencies must obtain approval
from OMB for each collection of
information they conduct or sponsor.
‘‘Collection of information’’ means
agency requests or requirements that
members of the public submit reports,
keep records, or provide information to
a third party. 44 U.S.C. 3502(3), 5 CFR
1320.3(c). As required by the PRA, the
FTC is providing this opportunity for
public comment before requesting that
OMB extend the existing paperwork
clearance for the regulations noted
herein. 44 U.S.C. 3506(c)(2)(A).
The FTC invites comments on: (1)
whether the proposed collection of
information is necessary for the proper
performance of the functions of the
agency, including whether the
information will have practical utility;
(2) the accuracy of the agency’s estimate
of the burden of the proposed collection
of information, including the validity of
the methodology and assumptions used;
(3) ways to enhance the quality, utility,
and clarity of the information to be
collected; and (4) ways to minimize the
burden of the collection of information
on those who are to respond, including
through the use of appropriate
automated, electronic, mechanical, or
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other technological collection
techniques or other forms of information
technology, e.g., permitting electronic
submission of responses.
Each of these four rules impose
certain recordkeeping and disclosure
requirements associated with providing
credit or with other financial
transactions. As detailed below, the FTC
staff has calculated the PRA burden for
each rule based on the compliance costs
of entities over which the FTC has
jurisdiction. All of these rules require
covered entities to keep certain records.
FTC staff believes that these entities
would likely retain these records in the
normal course of business even absent
the recordkeeping requirements in the
rules.2 Covered entities, however, may
incur some burden associated with
ensuring that they do not prematurely
dispose of relevant records (i.e., during
the period of time when they are
required to retain records by the
applicable rule).
Disclosure requirements involve both
set-up and monitoring costs as well as
certain transaction-specific costs. ‘‘Setup’’ burden, incurred by new entrants
only, includes identifying the applicable
disclosure requirements, determining
compliance obligations, and designing
and developing compliance systems and
procedures. ‘‘Monitoring’’ burden,
incurred by all covered entities,
includes reviewing changes to
regulatory requirements, making
necessary revisions to compliance
systems and procedures, and monitoring
the ongoing operation of systems and
procedures to ensure continued
compliance. ‘‘Transaction-related’’
burden refers to the effort associated
with providing the various required
disclosures in individual transactions.
While this burden varies with the
number of transactions, the figures
shown for transaction-related burden in
the tables that follow are estimated
averages.
The actual range of compliance
burden experienced by covered entities,
and reflected in those averages, varies
widely. Depending on the extent to
which covered entities have developed
computer-based systems and procedures
for providing the required disclosures
(and/or the extent to which entities
utilize electronic transactions,
communications, and/or electronic
recordkeeping), and the efficacy of those
systems and procedures, some entities
2 PRA ‘‘burden’’ does not include effort expended
in the ordinary course of business, regardless of any
regulatory requirement. 5 CFR 1320.3(b)(2).
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may have little burden, while others
may have a higher burden.3
Calculating the burden associated
with the four regulations’ disclosure
requirements is very difficult because of
the highly diverse group of affected
entities. The ‘‘respondents’’ included in
the following burden calculations
consist of credit and lease advertisers,
creditors, financial institutions, service
providers, certain government agencies
and others involved in delivering
electronic fund transfers (‘‘EFTs’’) of
government benefits, and lessors.4 The
burden estimates represent FTC staff’s
best assessment, based on its knowledge
and expertise relating to the financial
services industry. To derive these
estimates, FTC staff considered the wide
variations in covered entities’: (1) size
and location; (2) credit or lease products
offered, extended, or advertised, and
their particular terms; (3) types of EFTs
used; (4) types and occurrences of
adverse actions; (5) types of appraisal
reports utilized; and (6) computer
systems and electronic features of
compliance operations.
The required disclosures do not
impose PRA burden on some covered
entities because the entities make those
disclosures in the ordinary course of
business. In addition, as noted above,
some entities use computer-based and/
or electronic means of providing the
required disclosures, while others rely
on methods requiring more manual
effort.
The cost estimates detailed below
relate solely to labor costs and include
the time necessary to train employees
how to comply with the regulations.
The applicable PRA requirements
impose minimal capital or other nonlabor costs, as affected entities generally
have the necessary equipment for other
business purposes. Similarly, FTC staff
estimates that compliance with these
rules entails minimal printing and
copying costs beyond that associated
with documenting financial transactions
in the ordinary course of business.
3 For example, large companies may use
computer-based and/or electronic means to provide
required disclosures, including issuing some
disclosures en masse, e.g., notices of changes in
terms. Smaller companies may have less automated
compliance systems but may nonetheless rely on
electronic mechanisms for disclosures and
recordkeeping. Regardless of size, some entities
may utilize compliance systems that are fully
integrated into their general business operational
system; as such, they may have minimal additional
burden. Other entities may have incorporated fewer
of these approaches into their systems and may
have a higher burden.
4 The Commission generally does not have
jurisdiction over banks, thrifts, and federal credit
unions under the applicable regulations.
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1. Regulation B
The ECOA prohibits discrimination in
the extension of credit. The Board of
Governors of the Federal Reserve
System (‘‘FRB’’) promulgated Regulation
B, 12 CFR 202, to implement the ECOA.
Regulation B establishes disclosure
requirements to assist customers in
understanding their rights under the
ECOA and recordkeeping requirements
to assist in detecting unlawful
discrimination and other violations. The
FTC enforces the ECOA as to all
creditors except those (such as federally
chartered or insured depository
institutions) that are subject to the
regulatory authority of another federal
agency.
Estimated annual hours burden:
3,129,437 hours, rounded to the nearest
thousand (1,153,500 recordkeeping
hours + 1,975,937 disclosure hours)
Recordkeeping: FTC staff estimates
that Regulation B’s general
recordkeeping requirements affect
1,000,000 credit firms within the
Commission’s jurisdiction, at an average
annual burden of one hour per firm, for
a total of 1,000,000 hours. Staff also
estimates that the requirement that
mortgage creditors monitor information
about race/national origin, sex, age, and
marital status imposes a maximum
burden of one minute each5 for
approximately 9 million credit
applications,6 for a total of 150,000
hours. Staff also estimates that keeping
records of self-testing pursuant to the
regulation would affect 2,500 firms,
with an average annual burden of one
hour per firm, for a total of 2,500 hours,
and that recordkeeping of any corrective
action for self-testing would affect 250
firms in a given year, with an average
annual burden of four hours per firm,
for a total of 1,000 hours. The total
estimated recordkeeping burden is
1,153,500 hours.
Disclosure: Regulation B requires that
creditors (i.e., entities that regularly
participate in a credit decision,
including setting the terms of the credit)
provide notice whenever they take
adverse action. It requires entities that
extend various types of mortgage credit
to provide a copy of the appraisal report
to applicants or to notify them of their
70349
right to a copy of the report (and
thereafter provide a copy of the report,
upon the applicant’s request). It also
requires that, for accounts that spouses
may use or for which they are
contractually liable, creditors who
report credit history must do so in a
manner reflecting both spouses’
participation. Further, it requires
creditors that collect applicant
characteristics for purposes of
conducting a self-test to disclose to
those applicants that providing the
information is optional, that the creditor
will not take the information into
account in any aspect of the credit
transaction, and, if applicable, that the
information will be noted by visual
observation or surname if the applicant
chooses not to provide it.7
Regulation B applies to retailers,
mortgage lenders, mortgage brokers,
finance companies, utilities (for some
requirements), and others. Below is FTC
staff’s best estimate of burden applicable
to the wide spectrum of these entities
within the FTC’s jurisdiction.
REGULATION B: DISCLOSURES—BURDEN HOURS
Setup/Monitoring1
Disclosures
Respondents
Average Burden per Respondent
(hours)
250,000
1,000,000
20,000
20,000
2,500
.25
.5
.5
.5
.5
Credit history reporting
Adverse action notices
Appraisal notices
Appraisal reports
Self-test disclosures
Total
Transaction-related2
Total Setup/
Monitoring
Burden
(hours)
Number of
Transactions
62,500
500,000
10,000
10,000
1,250
Average Burden per
Transaction
(minutes)
125,000,000
200,000,000
4,500,000
4,500,000
125,000
.25
.25
.25
.25
.25
Total Transactions Burden (hours)
520,833
833,333
18,750
18,750
521
Total Burden
(hours)
583,333
1,333,333
28,750
28,750
1,771
1,975,937
1 With respect to appraisal notices and appraisal reports, the above figures reflect a decrease in applicable mortgage entities. The figures assume that approximately half of those entities (.5 x 40,000, or 20,000 businesses) would not otherwise provide this information and thus would
be affected. The figures also assume that all applicable entities would provide notices first and thereafter provide the reports upon request.
2 The above figures reflect a decrease in mortgage transactions compared to prior FTC estimates. They assume that half of applicable mortgage transactions (.5 x 9,000,000, or 4,500,000) would not otherwise provide the appraisal notices and reports and thus would be affected.
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Estimated annual cost burden:
$83,456,633 rounded to the nearest
thousand ($22,005,000 recordkeeping
cost + $61,451,633 disclosure cost)
FTC staff calculated labor costs by
applying appropriate hourly cost figures
to the burden hours described above.
The hourly rates used below ($41 for
managerial or professional time, $30 for
skilled technical time, and $16 for
clerical time) are averages, based on the
most currently available Bureau of
Labor Statistics cost figures posted
online.8
Recordkeeping: FTC staff estimates
that the general recordkeeping
responsibility of one hour per creditor
would involve approximately 90
percent clerical time and 10 percent
skilled technical time. Keeping records
of race/national origin, sex, age, and
marital status requires an estimated one
minute of skilled technical time.
Keeping records of the self-test
responsibility and of any corrective
actions requires an estimated one hour
and four hours, respectively, of skilled
technical time. As shown in the table
below, the total recordkeeping cost is
$22,005,000.
Disclosure: For each notice or
information item listed, FTC staff
estimates that the burden hours consist
of 10 percent managerial time and 90
percent skilled technical time. As
5 Regulation B contains model forms that
creditors may use to gather and retain the required
information.
6 The decrease in credit applications relative to
prior FTC estimates is based on industry data
regarding the approximate number of mortgage
purchase and refinance originations.
7 The disclosure may be provided orally or in
writing. Regulation B provides a model form to
assist creditors in providing the disclosure.
8 https://www.bls.gov/ncs/ncswage2007.htm
(National Compensation Survey: Occupational
Earnings in the United States 2007, US Department
of Labor released August 2008, Bulletin 2704, Table
3 (‘‘Full-time civilian workers,’’ mean and median
hourly wages).
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shown below, the total disclosure cost is
$61,451,633.
REGULATION B: RECORDKEEPING AND DISCLOSURES—COST
Managerial
Required Task
Time (hours)
General recordkeeping
Other recordkeeping
Recordkeeping of test
Recordkeeping of corrective
action
Skilled Technical
Cost ($41/hr.)
Time (hours)
Clerical
Cost ($30/hr.)
Time (hours)
Cost ($16/hr.)
Total Cost ($)
0
0
0
$0
$0
$0
100,000
150,000
2,500
$3,000,000
$4,500,000
$75,000
900,000
0
0
$14,400,000
$0
$0
$17,400,000
$4,500,000
$75,000
0
$0
1,000
$30,000
0
$0
$30,000
Total Recordkeeping
$22,005,000
Credit history reporting
Adverse action notices
Appraisal notices
Appraisal reports
Self-test disclosure
58,333
133,333
2,875
2,875
177
$2,391,653
$5,466,653
$117,875
$117,875
$7,257
525,000
1,200,000
25,875
25,875
1,594
$15,750,000
$36,000,000
$776,250
$776,250
$47,820
0
0
0
0
0
$0
$0
$0
$0
$0
Total Disclosures
Total Recordkeeping and
Disclosures
$18,141,653
$41,466,653
$894,125
$894,125
$55,077
$61,451,633
$83,456,633
2. Regulation E
The EFTA requires accurate
disclosure of the costs, terms, and rights
relating to EFT services provided to
consumers. The FRB promulgated
Regulation E, 12 CFR 205, to implement
the EFTA. Regulation E establishes
disclosure requirements to assist
consumers and establishes
recordkeeping requirements to assist in
enforcing the EFTA. The FTC enforces
the EFTA as to all entities providing
EFT services, except those (such as
federally chartered or insured
depository institutions) that are subject
to the regulatory authority of another
federal agency.
Estimated annual hours burden:
3,731,342 hours (600,000 recordkeeping
hours + approximately 3,131,342
disclosure hours)
Recordkeeping: FTC staff estimates
that Regulation E’s recordkeeping
requirements affect 600,000 firms
within the Commission’s jurisdiction
that offer EFT services to consumers, at
an average annual burden of one hour
per firm, for a total of 600,000 hours.
Disclosure: Regulation E applies to
financial institutions (including certain
retailers and various electronic
commerce entities, such as other
payees), service providers, various
federal and state agencies offering EFTs,
and others. Below is FTC staff’s best
estimate of burden applicable to this
highly broad spectrum of covered
entities.
REGULATION E: DISCLOSURES—BURDEN HOURS
Setup/Monitoring
Disclosures1
Transaction-related
Respondents
Average Burden per Respondent
(hours)
100,000
25,000
100,000
100,000
100,000
500,000
100,000
10,000
500
.5
.5
.5
.5
.5
.5
.25
.5
.25
50,000
12,500
50,000
50,000
50,000
250,000
25,000
5,000
125
1,000,000
33,000,000
1,200,000,000
1,000,000
5,000,000,000
1,000,000
1,000,000
100,000,000
250,000
.02
.02
.02
5
.02
.25
.25
.25
.25
333
11,000
400,000
83,333
1,666,667
4,167
4,167
416,667
1,041
50,333
23,500
450,000
133,333
1,716,667
254,167
29,167
421,667
1,166
100,000
100
.5
.5
50,000
50
3,500,000
2,500
.02
3
1,167
125
51,167
175
3,131,342
Initial terms
Change in terms
Periodic statements
Error resolution
Transaction receipts2
Preauthorized transfers
Service provider notices
Govt. benefit notices
ATM3
Electronic check conversion4
Payroll cards5
Total
Total Setup/
Monitoring
Burden
(hours)
Number of
Transactions
Average Burden per
Transaction
(minutes)
1
Total Burden
(hours)
This reflects an increase in entities offering EFT services to consumers.
Regulation E now exempts EFTs of $15 or less from receipt requirements, which could decrease the burden of providing transaction receipts.
However, use of the exemption could involve reprogramming costs. Due to the relatively recent change, the burden associated with transaction
receipts has not been changed.
3 Regulation E now permits ATM operators that do not charge fees for services in all circumstances to disclose on signs that a fee ‘‘may’’
(rather than ‘‘will’’) be charged. However, making this change would require replacing existing signage, which could increase disclosure burden.
Due to the relatively recent change and its voluntary nature, the burden associated with ATM notice has not been revised.
4 Regulation E now includes requirements for electronic check conversion.
5 Regulation E now includes requirements for payroll cards.
2
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Total Transactions Burden (hours)
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Estimated annual cost burden:
$107,825,124, rounded to the nearest
thousand ($10,440,000 recordkeeping
cost + $97,385,124 disclosure cost)
FTC staff calculated labor costs by
applying appropriate hourly cost figures
to the burden hours described above.
The hourly rates used below ($41 for
managerial or professional time, $30 for
skilled technical time, and $16 for
clerical time) are averages, based on
current Bureau of Labor Statistics cost
figures.9
Recordkeeping: For the 600,000
recordkeeping hours, FTC staff
estimates that 10 percent of the burden
hours require skilled technical time and
90 percent require clerical time. As
shown below, the total recordkeeping
cost is $10,440,000.
Disclosure: For each notice or
information item listed, FTC staff
estimates that 10 percent of the burden
hours require managerial time and 90
percent require skilled technical time.
As shown below, the total disclosure
cost is $97,385,124.
REGULATION E: RECORDKEEPING AND DISCLOSURES—COST
Managerial
Required Task
Time (hours)
Recordkeeping
Skilled Technical
Cost ($41/hr.)
Time (hours)
Clerical
Cost ($30/hr.)
Time (hours)
Cost ($16/hr.)
Total Cost ($)
0
60,000
$1,800,000
540,000
$8,640,000
$10,440,000
5,033
2,350
45,000
13,333
171,667
25,417
2,917
42,167
116
5,117
50
Disclosures:
Initial terms
Change in terms
Periodic statements
Error resolution
Transaction receipts
Preauthorized transfers
Service provider notices
Govt. benefit notices
ATM notices
Electronic check conversion
Payroll cards
$0
$206,353
$96,350
$1,845,000
$546,653
$7,038,347
$1,042,097
$119,597
$1,728,874
$4,756
$209,797
$2,050
45,300
21,150
405,000
120,000
1,545,000
228,750
26,250
379,500
1,050
46,050
125
$1,359,000
$634,500
$12,150,000
$3,600,000
$46,350,000
$6,826,500
$787,500
$11,385,000
$31,500
$1,381,500
$3,750
0
0
0
0
0
0
0
0
0
0
0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$1,565,353
$730,850
$13,995,000
$4,146,653
$53,388,347
$7,904,597
$907,097
$13,113,874
$36,256
$1,591,297
$5,800
Total Disclosures
Total Recordkeeping and
Disclosures
$97,385,124
$107,825,124
3. Regulation M
The CLA requires accurate disclosure
of the costs and terms of leases to
consumers. The FRB promulgated
Regulation M, 12 CFR 213, to
implement the CLA. Regulation M
establishes disclosure requirements that
assist consumers in comparison
shopping and in understanding the
terms of leases and recordkeeping
requirements that assist enforcement of
the CLA. The FTC enforces the CLA as
to all lessors and advertisers except
those that are subject to the regulatory
authority of another federal agency
(such as federally chartered or insured
depository institutions).
Estimated annual hours burden:
225,000 hours, rounded to the nearest
thousand (120,000 recordkeeping hours
+ 104,875 disclosure hours)
Recordkeeping: FTC staff estimates
that Regulation M’s recordkeeping
requirements affect approximately
120,000 firms within the Commission’s
jurisdiction that lease products to
consumers, at an average annual burden
of one hour per firm, for a total of
120,000 hours.
Disclosure: Regulation M applies to
automobile lessors (such as auto dealers,
independent leasing companies, and
manufacturers’ captive finance
companies), computer lessors (such as
computer dealers and other retailers),
furniture lessors, various electronic
commerce lessors, diverse types of lease
advertisers, and others. Below is FTC
staff’s best estimate of burden applicable
to the wide spectrum of these entities
within the FTC’s jurisdiction.
REGULATION M: DISCLOSURES—BURDEN HOURS
Setup/Monitoring
Respondents
45,000
75,000
20,000
Disclosures
Average Burden per Respondent
(hours)
.75
.50
.50
rwilkins on PROD1PC63 with NOTICES
Auto Leases1
Other Leases2
Advertising
Total
Transaction-related
Total Setup/
Monitoring
Burden
(hours)
Number of
Transactions
33,750
37,500
10,500
Average Burden per
Transaction
(minutes)
2,000,000
750,000
800,000
.50
.25
.25
Total Transactions Burden (hours)
16,667
3,125
3,333
Total Burden
(hours)
50,417
40,625
13,833
104,875
1 This category focuses on consumer vehicle leases. Vehicle leases are subject to more lease disclosure requirements (pertaining to computation of payment obligations) than other lease transactions. (Only consumer leases for more than four months are covered.) See 15 U.S.C.
1667(1); 12 CFR 213.2(e)(1). This reflects a decrease in auto leasing entities and transactions, relative to prior FTC estimates.
2 This category focuses on all types of consumer leases other than vehicle leases. It includes leases for computers, other electronics, small
appliances, furniture, and other transactions. (Only consumers leases for more than four months are covered.) See 15 U.S.C. 1667(1); 12 CFR
213.2(e)(1). This reflects a decrease in consumer leasing entities and transactions, relative to prior FTC estimates.
9
See note 8.
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70352
Federal Register / Vol. 73, No. 225 / Thursday, November 20, 2008 / Notices
Estimated annual cost burden:
$5,349,618, rounded to the nearest
thousand ($2,088,000 recordkeeping
cost + $3,261,618 disclosure cost)
FTC staff calculated labor costs by
applying appropriate hourly cost figures
to the burden hours described above.
The hourly rates used below ($41 for
managerial or professional time, $30 for
skilled technical time, and $16 for
clerical time) are averages, based on
current Bureau of Labor Statistics cost
figures.10
Recordkeeping: For the 120,000
recordkeeping hours, FTC staff
estimates that 10 percent of the burden
hours require skilled technical time and
90 percent require clerical time. As
shown in the table below, the total
recordkeeping cost is $2,088,000.
Disclosure: For each notice or
information item listed, FTC staff
estimates that 10 percent of the burden
hours require managerial time and 90
percent require skilled technical time.
As shown in the table below, the total
disclosure cost is $3,261,618.
REGULATION M: RECORDKEEPING AND DISCLOSURES—COST
Managerial
Required Task
Time (hours)
Recordkeeping
Skilled Technical
Cost ($41/hr.)
Time (hours)
Clerical
Cost ($30/hr.)
Time (hours)
Cost ($16/hr.)
Total Cost ($)
0
12,000
$360,000
108,000
$1,728,000
$2,088,000
5,042
4,063
1,383
Disclosures
Auto Leases
Other Leases
Advertising
$0
$206,722
$166,583
$56,703
45,375
36,562
12,450
$1,361,250
$1,096,860
$373,500
0
0
0
$0
$0
$0
$1,567,972
$1,263,443
$430,203
Total Disclosures
Total Recordkeeping and
Disclosures
$3,261,618
$5,349,618
4. Regulation Z
The TILA was enacted to foster
comparison credit shopping and
informed credit decision making by
requiring creditors and others to provide
accurate disclosure of the costs and
terms of credit to consumers. The FRB
promulgated Regulation Z, 12 CFR 226,
to implement the TILA. Regulation Z
establishes disclosure requirements to
assist consumers and recordkeeping
requirements to assist enforcement of
the TILA. The FTC enforces the TILA as
to all creditors and advertisers except
credit, at an average annual burden of
one hour per firm, for a total of
1,000,000 hours.
Disclosure: Regulation Z disclosure
requirements pertain to open-end and
closed-end credit. The Regulation
applies to various types of entities,
including mortgage companies; finance
companies; auto dealerships; student
loan companies; merchants who extend
credit for goods or services, credit
advertisers; and others. Below is FTC
staff’s best estimate of burden applicable
to the wide spectrum of these entities
within the FTC’s jurisdiction.
those that are subject to the regulatory
authority of another federal agency
(such as federally chartered or insured
depository institutions).
Estimated annual hours burden:
12,415,413 hours, rounded to the
nearest thousand (1,000,000
recordkeeping hours + 11,415,413
disclosure hours)
Recordkeeping: FTC staff estimates
that Regulation Z’s recordkeeping
requirements affect approximately
1,000,000 firms within the
Commission’s jurisdiction that offer
REGULATION Z: DISCLOSURES—BURDEN HOURS
Setup/Monitoring
Disclosures1
Respondents
Average Burden per Respondent
(hours)
90,000
7,500
20,000
90,000
90,000
.5
.5
.5
.5
.5
45,000
3,750
10,000
45,000
45,000
40,000,000
400,000
125,000,000
3,500,000,000
8,000,000
.25
.25
.125
.0625
5
166,666
1,6665,416
260,416
3,645,833
666,666
270,416
3,690,833
711,666
50,000
7,500
200,000
.5
.5
.5
25,000
3,750
100,000
25,000,000
3,500,000
600,000
.25
.25
.5
104,166
14,583
5,000
129,166
18,333
105,000
700,000
75,000
70,000
.5
.5
.5
350,000
37,500
35,000
200,000,000
30,000,000
2,000,000
1.5
1
1.5
5,000,000
500,000
50,000
5,350,000
537,500
85,000
40,000
.5
20,000
500,000
1.5
12,500
32,500
rwilkins on PROD1PC63 with NOTICES
Open-end credit:
Initial terms
Rescission notices
Change in terms
Periodic statements
Error resolution
Credit and charge card accounts
Home equity lines of credit
Advertising
Closed-end credit:
Credit disclosures
Rescission notices
Variable rate mortgages
High rate/high-fee mortgages
10
Transaction-related
Total Setup/
Monitoring
Burden
(hours)
Number of
Transactions
Average Burden per
Transaction
(minutes)
See note 8.
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Total Transactions Burden (hours)
Total Burden
(hours)
211,666
70353
Federal Register / Vol. 73, No. 225 / Thursday, November 20, 2008 / Notices
REGULATION Z: DISCLOSURES—BURDEN HOURS—Continued
Setup/Monitoring
Disclosures1
Respondents
Average Burden per Respondent
(hours)
Reverse mortgages
Advertising2
50,000
450,000
.5
.5
Transaction-related
Total Setup/
Monitoring
Burden
(hours)
Number of
Transactions
25,000
225,000
175,000
900,000
Average Burden per
Transaction
(minutes)
Total Transactions Burden (hours)
12,917
115,000
Total Burden
(hours)
27,917
240,000
Total open-end credit
Total closed-end credit
Total credit
5,142,496
6,272,917
11,415,413
1 Generally, open-end and closed-end entities and transactions have decreased, but reverse mortgages have increased, relative to prior FTC
estimates.
2 Advertising time for setup for open-end and closed-end mortgage transactions is estimated to increase based on new rules effective October
1, 2009, but the number of transactions have decreased, relative to prior FTC estimates.
Estimated annual cost burden:
$372,419,363, rounded to the nearest
thousand ($17,400,000 recordkeeping
cost + $355,019,363 disclosure cost)
FTC staff calculated labor costs by
applying appropriate hourly cost figures
to the burden hours described above.
The hourly rates used below ($41 for
managerial or professional time, $30 for
skilled technical time, and $16 for
clerical time) are averages, based on
current Bureau of Labor Statistics cost
figures.2
Recordkeeping: For the 1,000,000
recordkeeping hours, FTC staff
estimates that 10 percent of the burden
hours require skilled technical time and
90 percent require clerical time. As
shown in the table below, the total
recordkeeping cost is $17,400,000.
Disclosure: For each notice or
information item listed, FTC staff
estimates that 10 percent of the burden
hours require managerial time and 90
percent require skilled technical time.
As shown in the table below, the total
disclosure cost is $355,019,363.
REGULATION Z: RECORDKEEPING AND DISCLOSURES—COST
Managerial
Required Task
Time (hours)
Recordkeeping
Skilled Technical
Cost ($41/hr.)
Time (hours)
Cost ($30/hr.)
Clerical
Time (hours)
Closed-end credit Disclosures:
Credit disclosures
Rescission notices
Variable rate mortgages
High-rate/high-fee mortgages
Reverse mortgages
Advertising
Total closed-end credit
$0
100,000
$3,000,000
900,000
$14,400,000
$17,400,000
21,167
542
27,042
369,083
71,167
$867,847
$22,222
$1,108,722
$15,132,403
$2,917,847
190,499
4,874
243,374
3,321,750
640,499
$5,714,970
$146,220
$7,301,220
$99,652,500
$19,214,970
0
0
0
0
0
$0
$0
$0
$0
$0
$6,582,817
$168,442
$8,409,942
$114,784,903
$22,132,817
12,917
1,833
10,500
$529,597
$75,153
$430,500
116,249
16,500
94,500
$3,487,470
$495,000
$2,835,000
0
0
0
$0
$0
$0
$4,017,067
$570,153
$3,265,500
$159,931,641
535,000
53,750
8,500
$21,935,000
$2,203,750
$348,500
4,815,000
483,750
76,500
$144,450,000
$14,512,500
$2,295,000
0
0
0
$0
$0
$0
$166,385,000
$16,716,250
$2,643,500
3,250
2,792
24,000
$133,250
$114,472
$984,000
29,250
25,125
216,000
$877,500
$753,750
$6,480,000
0
0
0
$0
$0
$0
$1,010,750
$868,222
$7,464,000
$195,087,722
rwilkins on PROD1PC63 with NOTICES
Total Disclosures
Total Recordkeeping and
Disclosures
$355,019,363
$372,419,363
See note 8.
VerDate Aug<31>2005
Total Cost ($)
0
Open-end credit Disclosures:
Initial terms
Rescission notices
Change in terms
Periodic statements
Error resolution
Credit and charge card accounts
Home equity lines of credit
Advertising
Total open-end credit
2
Cost ($16/hr.)
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70354
Federal Register / Vol. 73, No. 225 / Thursday, November 20, 2008 / Notices
William Blumenthal,
General Counsel.
[FR Doc. E8–27534 Filed 11–19–08: 8:45 am]
BILLING CODE 6750–01–S
DEPARTMENT OF HEALTH AND
HUMAN SERVICES
[Document Identifier: OS–0990–0263]
Agency Information Collection
Request; 30-Day Public Comment
Request
Office of the Secretary.
In compliance with the requirement
of section 3506(c)(2)(A) of the
Paperwork Reduction Act of 1995, the
Office of the Secretary (OS), Department
of Health and Human Services, is
publishing the following summary of a
proposed information collection request
for public comment. Interested persons
are invited to send comments regarding
this burden estimate or any other aspect
of this collection of information,
including any of the following subjects:
(1) The necessity and utility of the
proposed information collection for the
proper performance of the agency’s
functions; (2) the accuracy of the
estimated burden; (3) ways to enhance
the quality, utility, and clarity of the
information to be collected; and (4) the
AGENCY:
use of automated collection techniques
or other forms of information
technology to minimize the information
collection burden.
To obtain copies of the supporting
statement and any related forms for the
proposed paperwork collections
referenced above, e-mail your request,
including your address, phone number,
OMB number, and OS document
identifier, to
Sherette.funncoleman@hhs.gov, or call
the Reports Clearance Office on (202)
690–5683.
Written comments and
recommendations for the proposed
information collections must be directed
to the OS Paperwork Clearance Officer
at the above e-mail address within 30
days.
Proposed Project: Protection of
Human Subjects: Assurance
Identification/IRB Certification/
Declaration of Exemption Form
Extension—OMB No. 0990–0263—
Office for Human Research Protections.
Abstract: The Federal Policy for the
Protection of Human Subjects, known as
the Common Rule, requires that before
engaging in non-exempt human subjects
research that is conducted or supported
by a Common Rule department or
agency, each institution must: (1) Hold
an applicable assurance of compliance
[Section 103(a)]; and (2) certify to the
awarding department or agency that the
application or proposal for research has
been reviewed and approved by an IRB
designated in the assurance [Sections
103(b) and (f)]. The Office for Human
Research Protections is requesting a
three-year extension of the Protection of
Human Subjects: Assurance
Identification/IRB Certification/
Declaration of Exemption Form. That
form is designed to promote uniformity
among departments and agencies, and to
help ensure common means of
ascertaining institutional review board
certifications and other reporting
requirements relating to the protection
of human subjects in research.
Respondents are institutions engaged in
research involving human subjects
where the research is supported by
HHS. Institutional use of the form is
also relied upon by other federal
departments and agencies that have
codified or follow the Federal Policy for
the Protection of Human Subjects
(Common Rule). There are an estimated
total of 70,000 health or human research
studies supported each year, meaning
an average of 7 certifications per
institution annually, requiring an
estimated one-half hour per certification
for a total burden of 35,000 hours. Data
is collected as needed.
ESTIMATED ANNUALIZED BURDEN IN HOURS FOR IRB CERTIFICATION BURDEN
Number of
respondents
Form name
Number of
responses
per
respondent
Average
burden per
response
(in hours)
10,000
7
0.5
Protection of Human Subjects: Assurance Identification/IRB Certification/Declaration
of Exemption ................................................................................................................
John Teeter,
Office of the Secretary, Paperwork Reduction
Act Reports Clearance Officer.
[FR Doc. E8–27628 Filed 11–19–08; 8:45 am]
BILLING CODE 4150–36–P
DEPARTMENT OF HEALTH AND
HUMAN SERVICES
Proposed Project
Centers for Disease Control and
Prevention
[30Day–08–0010]
rwilkins on PROD1PC63 with NOTICES
Agency Forms Undergoing Paperwork
Reduction Act Review
The Centers for Disease Control and
Prevention (CDC) publishes a list of
information collection requests under
review by the Office of Management and
Budget (OMB) in compliance with the
Paperwork Reduction Act (44 U.S.C.
VerDate Aug<31>2005
18:26 Nov 19, 2008
Jkt 217001
Chapter 35). To request a copy of these
requests, call the CDC Reports Clearance
Officer at (404) 639–5960 or send an email to omb@cdc.gov. Send written
comments to CDC Desk Officer, Office of
Management and Budget, Washington,
DC or by fax to (202) 395–6974. Written
comments should be received within 30
days of this notice.
The National Birth Defects Prevention
Study (NBDPS)—Revision—National
Center on Birth Defects and
Developmental Disabilities (NCBDDD),
Centers for Disease Control and
Prevention (CDC).
Background and Brief Description
Address the following criteria
provided in 5 CFR 1320.5(a): CDC has
been monitoring the occurrence of
serious birth defects and genetic
PO 00000
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Fmt 4703
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Total
burden
hours
35,000
diseases in Atlanta since 1967 through
the Metropolitan Atlanta Congenital
Defects Program (MACDP). The MACDP
is a population-based surveillance
system for birth defects in the 5 counties
of Metropolitan Atlanta, which is being
requested for OMB clearance for three
additional years. Its primary purpose is
to describe the spatial and temporal
patterns of birth defects occurrence and
serves as an early warning system for
new Teratogens. In 1997, the Birth
Defects Risk Factor Surveillance
(BDRFS) study, a case-control study of
risk factors for selected birth defects,
became the National Birth Defects
Prevention Study (NBDPS). The major
components of the study did not
change.
The NBDPS is a case-control study of
major birth defects that includes cases
identified from existing birth defect
surveillance registries in nine states,
E:\FR\FM\20NON1.SGM
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]]>Agencies
[Federal Register Volume 73, Number 225 (Thursday, November 20, 2008)]
[Notices]
[Pages 70347-70354]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-27534]
=======================================================================
-----------------------------------------------------------------------
FEDERAL TRADE COMMISSION
Agency Information Collection Activities; Proposed Collection;
Comment Request
AGENCY: Federal Trade Commission (``FTC'' or ``Commission'').
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: The information collection requirements described below will
be submitted to the Office of Management and Budget (``OMB'') for
review, as required by the Paperwork Reduction Act (``PRA''). The FTC
is seeking public comments on its proposal to extend through March 31,
2012 the current PRA clearances for information collection requirements
contained in four consumer financial regulations promulgated by the
Federal Reserve Board and enforced by the Commission. Those clearances
expire on March 31, 2009.
DATES: Comments must be received on or before January 20, 2009.
ADDRESSES: Interested parties are invited to submit written comments
electronically or in paper form. Comments should refer to ``Regs BEMZ,
PRA Comment, FTC File No. P084812'' to facilitate the organization of
comments. Please note that comments will be placed on the public record
of this proceeding--including on the publicly accessible FTC website,
at (https://www/ftc.gov/os/publiccomments.shtm) -- and therefore should
not include any sensitive or confidential information. In particular,
comments should not include any sensitive personal information, such as
an individual's Social Security Number; date of birth; driver's license
number or other state identification number, or foreign country
equivalent; passport number; financial account number; or credit or
debit card number. Comments also should not include any sensitive
health information, such as medical records or other individually
identifiable health information. In addition, comments should not
include any ``[t]rade secrets and commercial or financial information
obtained from a person and privileged or confidential . . .,'' as
provided in Section 6(f) of the FTC Act, 15 U.S.C. 46(f), and FTC Rule
4.10(a)(2), 16 CFR 4.10(a)(2). Comments containing material for which
confidential treatment is requested must be filed in paper form, must
be clearly labeled ``Confidential,'' and must comply with FTC Rule
4.9(c).\1\
---------------------------------------------------------------------------
\1\ FTC Rule 4.2(d), 16 CFR 4.2(d). The comment must be
accompanied by an explicit request for confidential treatment,
including the factual and legal basis for the request, and must
identify the specific portions of the comment to be withheld from
the public record. The request will be granted or denied by the
Commission's General Counsel, consistent with applicable law and the
public interest. See FTC Rule 4.9(c), 16 CFR 4.9(c).
---------------------------------------------------------------------------
Because paper mail addressed to the FTC is subject to delay to
heightened security screening, please consider submitting your comments
in electronic form. Comments filed in electronic form should be
submitted by using the following weblink: (https://
secure.commentworks.com/ftc-RegsBEMZ) (and following the instructions
on the web-based form). To ensure that the Commission considers an
electronic comment, you must file it on the web-based form at the
weblink (https://secure.commentworks.com/ftc-RegsBEMZ). If this Notice
appears at (https://www.regulations.gov/search/index.jsp), you may also
file an electronic comment through that website. The Commission will
consider all comments that regulations.gov forwards to it.
A comment filed in paper form should include the ``Regs BEMZ, PRA
Comment, FTC File No. P084812`` reference both in the text and on the
envelope, and should be mailed or delivered to the following address:
Federal Trade Commission, Office of the Secretary, Room H-135 (Annex
J), 600 Pennsylvania Avenue NW, Washington, DC 20580. The FTC is
requesting that any comment filed in paper form be sent by courier or
overnight service, if possible, because U.S. postal mail in the
Washington area and at the Commission is subject to delay due to
heightened security precautions.
The FTC Act and other laws the Commission administers permit the
collection of public comments to consider and use in this proceeding as
appropriate. The Commission will consider all timely and responsive
public comments that it receives, whether filed in paper or electronic
form. Comments received will be available to the public on the FTC
website, to the extent practicable, at (https://www.ftc.gov/os/
publiccomments.shtm). As a matter of discretion, the Commission makes
every effort to remove home contact information for individuals from
the public comments it receives before placing those comments on the
FTC
[[Page 70348]]
website. More information, including routine uses permitted by the
Privacy Act, may be found in the FTC's privacy policy, at (https://
www.ftc.gov/ftc/privacy.shtm).
FOR FURTHER INFORMATION CONTACT: Requests for additional information or
copies of the proposed information requirements should be addressed to
Carole Reynolds or James Chen, Attorneys, Division of Financial
Practices, Bureau of Consumer Protection, Federal Trade Commission, 600
Pennsylvania Ave., N.W., Washington, D.C. 20580, (202) 326-3230 or
(202) 326-2659.
SUPPLEMENTARY INFORMATION: The four regulations covered by this notice
are:
(1) Regulations promulgated under The Equal Credit Opportunity Act,
15 U.S.C. 1691 et seq. (``ECOA'') (``Regulation B'') (OMB Control
Number: 3084-0087);
(2) Regulations promulgated under The Electronic Fund Transfer Act,
15 U.S.C. 1693 et seq. (``EFTA'') (``Regulation E'') (OMB Control
Number: 3084-0085);
(3) Regulations promulgated under The Consumer Leasing Act, 15
U.S.C. 1667 et seq., (``CLA'') (``Regulation M'') (OMB Control Number:
3084-0086); and
(4) Regulations promulgated under The Truth-In-Lending Act, 15
U.S.C. 1601 et seq. (``TILA'') (``Regulation Z'') (OMB Control Number:
3084-0088).
Under the PRA, 44 U.S.C. 3501-3521, federal agencies must obtain
approval from OMB for each collection of information they conduct or
sponsor. ``Collection of information'' means agency requests or
requirements that members of the public submit reports, keep records,
or provide information to a third party. 44 U.S.C. 3502(3), 5 CFR
1320.3(c). As required by the PRA, the FTC is providing this
opportunity for public comment before requesting that OMB extend the
existing paperwork clearance for the regulations noted herein. 44
U.S.C. 3506(c)(2)(A).
The FTC invites comments on: (1) whether the proposed collection of
information is necessary for the proper performance of the functions of
the agency, including whether the information will have practical
utility; (2) the accuracy of the agency's estimate of the burden of the
proposed collection of information, including the validity of the
methodology and assumptions used; (3) ways to enhance the quality,
utility, and clarity of the information to be collected; and (4) ways
to minimize the burden of the collection of information on those who
are to respond, including through the use of appropriate automated,
electronic, mechanical, or other technological collection techniques or
other forms of information technology, e.g., permitting electronic
submission of responses.
Each of these four rules impose certain recordkeeping and
disclosure requirements associated with providing credit or with other
financial transactions. As detailed below, the FTC staff has calculated
the PRA burden for each rule based on the compliance costs of entities
over which the FTC has jurisdiction. All of these rules require covered
entities to keep certain records. FTC staff believes that these
entities would likely retain these records in the normal course of
business even absent the recordkeeping requirements in the rules.\2\
Covered entities, however, may incur some burden associated with
ensuring that they do not prematurely dispose of relevant records
(i.e., during the period of time when they are required to retain
records by the applicable rule).
---------------------------------------------------------------------------
\2\ PRA ``burden'' does not include effort expended in the
ordinary course of business, regardless of any regulatory
requirement. 5 CFR 1320.3(b)(2).
---------------------------------------------------------------------------
Disclosure requirements involve both set-up and monitoring costs as
well as certain transaction-specific costs. ``Set-up'' burden, incurred
by new entrants only, includes identifying the applicable disclosure
requirements, determining compliance obligations, and designing and
developing compliance systems and procedures. ``Monitoring'' burden,
incurred by all covered entities, includes reviewing changes to
regulatory requirements, making necessary revisions to compliance
systems and procedures, and monitoring the ongoing operation of systems
and procedures to ensure continued compliance. ``Transaction-related''
burden refers to the effort associated with providing the various
required disclosures in individual transactions. While this burden
varies with the number of transactions, the figures shown for
transaction-related burden in the tables that follow are estimated
averages.
The actual range of compliance burden experienced by covered
entities, and reflected in those averages, varies widely. Depending on
the extent to which covered entities have developed computer-based
systems and procedures for providing the required disclosures (and/or
the extent to which entities utilize electronic transactions,
communications, and/or electronic recordkeeping), and the efficacy of
those systems and procedures, some entities may have little burden,
while others may have a higher burden.\3\
---------------------------------------------------------------------------
\3\ For example, large companies may use computer-based and/or
electronic means to provide required disclosures, including issuing
some disclosures en masse, e.g., notices of changes in terms.
Smaller companies may have less automated compliance systems but may
nonetheless rely on electronic mechanisms for disclosures and
recordkeeping. Regardless of size, some entities may utilize
compliance systems that are fully integrated into their general
business operational system; as such, they may have minimal
additional burden. Other entities may have incorporated fewer of
these approaches into their systems and may have a higher burden.
---------------------------------------------------------------------------
Calculating the burden associated with the four regulations'
disclosure requirements is very difficult because of the highly diverse
group of affected entities. The ``respondents'' included in the
following burden calculations consist of credit and lease advertisers,
creditors, financial institutions, service providers, certain
government agencies and others involved in delivering electronic fund
transfers (``EFTs'') of government benefits, and lessors.\4\ The burden
estimates represent FTC staff's best assessment, based on its knowledge
and expertise relating to the financial services industry. To derive
these estimates, FTC staff considered the wide variations in covered
entities': (1) size and location; (2) credit or lease products offered,
extended, or advertised, and their particular terms; (3) types of EFTs
used; (4) types and occurrences of adverse actions; (5) types of
appraisal reports utilized; and (6) computer systems and electronic
features of compliance operations.
---------------------------------------------------------------------------
\4\ The Commission generally does not have jurisdiction over
banks, thrifts, and federal credit unions under the applicable
regulations.
---------------------------------------------------------------------------
The required disclosures do not impose PRA burden on some covered
entities because the entities make those disclosures in the ordinary
course of business. In addition, as noted above, some entities use
computer-based and/or electronic means of providing the required
disclosures, while others rely on methods requiring more manual effort.
The cost estimates detailed below relate solely to labor costs and
include the time necessary to train employees how to comply with the
regulations. The applicable PRA requirements impose minimal capital or
other non-labor costs, as affected entities generally have the
necessary equipment for other business purposes. Similarly, FTC staff
estimates that compliance with these rules entails minimal printing and
copying costs beyond that associated with documenting financial
transactions in the ordinary course of business.
[[Page 70349]]
1. Regulation B
The ECOA prohibits discrimination in the extension of credit. The
Board of Governors of the Federal Reserve System (``FRB'') promulgated
Regulation B, 12 CFR 202, to implement the ECOA. Regulation B
establishes disclosure requirements to assist customers in
understanding their rights under the ECOA and recordkeeping
requirements to assist in detecting unlawful discrimination and other
violations. The FTC enforces the ECOA as to all creditors except those
(such as federally chartered or insured depository institutions) that
are subject to the regulatory authority of another federal agency.
Estimated annual hours burden: 3,129,437 hours, rounded to the
nearest thousand (1,153,500 recordkeeping hours + 1,975,937 disclosure
hours)
Recordkeeping: FTC staff estimates that Regulation B's general
recordkeeping requirements affect 1,000,000 credit firms within the
Commission's jurisdiction, at an average annual burden of one hour per
firm, for a total of 1,000,000 hours. Staff also estimates that the
requirement that mortgage creditors monitor information about race/
national origin, sex, age, and marital status imposes a maximum burden
of one minute each\5\ for approximately 9 million credit
applications,\6\ for a total of 150,000 hours. Staff also estimates
that keeping records of self-testing pursuant to the regulation would
affect 2,500 firms, with an average annual burden of one hour per firm,
for a total of 2,500 hours, and that recordkeeping of any corrective
action for self-testing would affect 250 firms in a given year, with an
average annual burden of four hours per firm, for a total of 1,000
hours. The total estimated recordkeeping burden is 1,153,500 hours.
---------------------------------------------------------------------------
\5\ Regulation B contains model forms that creditors may use to
gather and retain the required information.
\6\ The decrease in credit applications relative to prior FTC
estimates is based on industry data regarding the approximate number
of mortgage purchase and refinance originations.
---------------------------------------------------------------------------
Disclosure: Regulation B requires that creditors (i.e., entities
that regularly participate in a credit decision, including setting the
terms of the credit) provide notice whenever they take adverse action.
It requires entities that extend various types of mortgage credit to
provide a copy of the appraisal report to applicants or to notify them
of their right to a copy of the report (and thereafter provide a copy
of the report, upon the applicant's request). It also requires that,
for accounts that spouses may use or for which they are contractually
liable, creditors who report credit history must do so in a manner
reflecting both spouses' participation. Further, it requires creditors
that collect applicant characteristics for purposes of conducting a
self-test to disclose to those applicants that providing the
information is optional, that the creditor will not take the
information into account in any aspect of the credit transaction, and,
if applicable, that the information will be noted by visual observation
or surname if the applicant chooses not to provide it.\7\
---------------------------------------------------------------------------
\7\ The disclosure may be provided orally or in writing.
Regulation B provides a model form to assist creditors in providing
the disclosure.
---------------------------------------------------------------------------
Regulation B applies to retailers, mortgage lenders, mortgage
brokers, finance companies, utilities (for some requirements), and
others. Below is FTC staff's best estimate of burden applicable to the
wide spectrum of these entities within the FTC's jurisdiction.
Regulation B: Disclosures--Burden Hours
--------------------------------------------------------------------------------------------------------------------------------------------------------
Setup/Monitoring\1\ Transaction-related\2\
------------------------------------------------------------------------------------
Average Total Setup/ Average Total Total Burden
Disclosures Burden per Monitoring Number of Burden per Transactions (hours)
Respondents Respondent Burden Transactions Transaction Burden
(hours) (hours) (minutes) (hours)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Credit history reporting 250,000 .25 62,500 125,000,000 .25 520,833 583,333
Adverse action notices 1,000,000 .5 500,000 200,000,000 .25 833,333 1,333,333
Appraisal notices 20,000 .5 10,000 4,500,000 .25 18,750 28,750
Appraisal reports 20,000 .5 10,000 4,500,000 .25 18,750 28,750
Self-test disclosures 2,500 .5 1,250 125,000 .25 521 1,771
Total ............ ............ ............ ............ ............ ............ 1,975,937
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ With respect to appraisal notices and appraisal reports, the above figures reflect a decrease in applicable mortgage entities. The figures assume
that approximately half of those entities (.5 x 40,000, or 20,000 businesses) would not otherwise provide this information and thus would be affected.
The figures also assume that all applicable entities would provide notices first and thereafter provide the reports upon request.
\2\ The above figures reflect a decrease in mortgage transactions compared to prior FTC estimates. They assume that half of applicable mortgage
transactions (.5 x 9,000,000, or 4,500,000) would not otherwise provide the appraisal notices and reports and thus would be affected.
Estimated annual cost burden: $83,456,633 rounded to the nearest
thousand ($22,005,000 recordkeeping cost + $61,451,633 disclosure cost)
FTC staff calculated labor costs by applying appropriate hourly
cost figures to the burden hours described above. The hourly rates used
below ($41 for managerial or professional time, $30 for skilled
technical time, and $16 for clerical time) are averages, based on the
most currently available Bureau of Labor Statistics cost figures posted
online.\8\
---------------------------------------------------------------------------
\8\ https://www.bls.gov/ncs/ncswage2007.htm (National
Compensation Survey: Occupational Earnings in the United States
2007, US Department of Labor released August 2008, Bulletin 2704,
Table 3 (``Full-time civilian workers,'' mean and median hourly
wages).
---------------------------------------------------------------------------
Recordkeeping: FTC staff estimates that the general recordkeeping
responsibility of one hour per creditor would involve approximately 90
percent clerical time and 10 percent skilled technical time. Keeping
records of race/national origin, sex, age, and marital status requires
an estimated one minute of skilled technical time. Keeping records of
the self-test responsibility and of any corrective actions requires an
estimated one hour and four hours, respectively, of skilled technical
time. As shown in the table below, the total recordkeeping cost is
$22,005,000.
Disclosure: For each notice or information item listed, FTC staff
estimates that the burden hours consist of 10 percent managerial time
and 90 percent skilled technical time. As
[[Page 70350]]
shown below, the total disclosure cost is $61,451,633.
Regulation B: Recordkeeping and Disclosures--Cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
Managerial Skilled Technical Clerical
------------------------------------------------------------------------------------ Total Cost
Required Task Time (hours) Cost ($41/ Time (hours) Cost ($30/ Time (hours) Cost ($16/ ($)
hr.) hr.) hr.)
--------------------------------------------------------------------------------------------------------------------------------------------------------
General recordkeeping 0 $0 100,000 $3,000,000 900,000 $14,400,000 $17,400,000
Other recordkeeping 0 $0 150,000 $4,500,000 0 $0 $4,500,000
Recordkeeping of test 0 $0 2,500 $75,000 0 $0 $75,000
Recordkeeping of corrective action 0 $0 1,000 $30,000 0 $0 $30,000
............ ............ ............ ............ ............ ............ ............
Total Recordkeeping ............ ............ ............ ............ ............ ............ $22,005,000
............ ............ ............ ............ ............ ............ ............
Credit history reporting 58,333 $2,391,653 525,000 $15,750,000 0 $0 $18,141,653
Adverse action notices 133,333 $5,466,653 1,200,000 $36,000,000 0 $0 $41,466,653
Appraisal notices 2,875 $117,875 25,875 $776,250 0 $0 $894,125
Appraisal reports 2,875 $117,875 25,875 $776,250 0 $0 $894,125
Self-test disclosure 177 $7,257 1,594 $47,820 0 $0 $55,077
............ ............ ............ ............ ............ ............ ............
Total Disclosures ............ ............ ............ ............ ............ ............ $61,451,633
Total Recordkeeping and Disclosures ............ ............ ............ ............ ............ ............ $83,456,633
--------------------------------------------------------------------------------------------------------------------------------------------------------
2. Regulation E
The EFTA requires accurate disclosure of the costs, terms, and
rights relating to EFT services provided to consumers. The FRB
promulgated Regulation E, 12 CFR 205, to implement the EFTA. Regulation
E establishes disclosure requirements to assist consumers and
establishes recordkeeping requirements to assist in enforcing the EFTA.
The FTC enforces the EFTA as to all entities providing EFT services,
except those (such as federally chartered or insured depository
institutions) that are subject to the regulatory authority of another
federal agency.
Estimated annual hours burden: 3,731,342 hours (600,000
recordkeeping hours + approximately 3,131,342 disclosure hours)
Recordkeeping: FTC staff estimates that Regulation E's
recordkeeping requirements affect 600,000 firms within the Commission's
jurisdiction that offer EFT services to consumers, at an average annual
burden of one hour per firm, for a total of 600,000 hours.
Disclosure: Regulation E applies to financial institutions
(including certain retailers and various electronic commerce entities,
such as other payees), service providers, various federal and state
agencies offering EFTs, and others. Below is FTC staff's best estimate
of burden applicable to this highly broad spectrum of covered entities.
Regulation E: Disclosures--Burden Hours
--------------------------------------------------------------------------------------------------------------------------------------------------------
Setup/Monitoring Transaction-related
------------------------------------------------------------------------------------
Average Total Setup/ Average Total Total Burden
Disclosures\1\ Burden per Monitoring Number of Burden per Transactions (hours)
Respondents Respondent Burden Transactions Transaction Burden
(hours) (hours) (minutes) (hours)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Initial terms 100,000 .5 50,000 1,000,000 .02 333 50,333
Change in terms 25,000 .5 12,500 33,000,000 .02 11,000 23,500
Periodic statements 100,000 .5 50,000 1,200,000,00 .02 400,000 450,000
0
Error resolution 100,000 .5 50,000 1,000,000 5 83,333 133,333
Transaction receipts\2\ 100,000 .5 50,000 5,000,000,00 .02 1,666,667 1,716,667
0
Preauthorized transfers 500,000 .5 250,000 1,000,000 .25 4,167 254,167
Service provider notices 100,000 .25 25,000 1,000,000 .25 4,167 29,167
Govt. benefit notices 10,000 .5 5,000 100,000,000 .25 416,667 421,667
ATM\3\ 500 .25 125 250,000 .25 1,041 1,166
Electronic check conversion\4\ 100,000 .5 50,000 3,500,000 .02 1,167 51,167
Payroll cards\5\ 100 .5 50 2,500 3 125 175
Total ............ ............ ............ ............ ............ ............ 3,131,342
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ This reflects an increase in entities offering EFT services to consumers.
\2\ Regulation E now exempts EFTs of $15 or less from receipt requirements, which could decrease the burden of providing transaction receipts. However,
use of the exemption could involve reprogramming costs. Due to the relatively recent change, the burden associated with transaction receipts has not
been changed.
\3\ Regulation E now permits ATM operators that do not charge fees for services in all circumstances to disclose on signs that a fee ``may'' (rather
than ``will'') be charged. However, making this change would require replacing existing signage, which could increase disclosure burden. Due to the
relatively recent change and its voluntary nature, the burden associated with ATM notice has not been revised.
\4\ Regulation E now includes requirements for electronic check conversion.
\5\ Regulation E now includes requirements for payroll cards.
[[Page 70351]]
Estimated annual cost burden: $107,825,124, rounded to the nearest
thousand ($10,440,000 recordkeeping cost + $97,385,124 disclosure cost)
FTC staff calculated labor costs by applying appropriate hourly
cost figures to the burden hours described above. The hourly rates used
below ($41 for managerial or professional time, $30 for skilled
technical time, and $16 for clerical time) are averages, based on
current Bureau of Labor Statistics cost figures.\9\
---------------------------------------------------------------------------
\9\ See note 8.
---------------------------------------------------------------------------
Recordkeeping: For the 600,000 recordkeeping hours, FTC staff
estimates that 10 percent of the burden hours require skilled technical
time and 90 percent require clerical time. As shown below, the total
recordkeeping cost is $10,440,000.
Disclosure: For each notice or information item listed, FTC staff
estimates that 10 percent of the burden hours require managerial time
and 90 percent require skilled technical time. As shown below, the
total disclosure cost is $97,385,124.
Regulation E: Recordkeeping and Disclosures--Cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
Managerial Skilled Technical Clerical
------------------------------------------------------------------------------------ Total Cost
Required Task Time (hours) Cost ($41/ Time (hours) Cost ($30/ Time (hours) Cost ($16/ ($)
hr.) hr.) hr.)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Recordkeeping 0 $0 60,000 $1,800,000 540,000 $8,640,000 $10,440,000
............ ............ ............ ............ ............ ............ ............
Disclosures: ............ ............ ............ ............ ............ ............ ............
Initial terms 5,033 $206,353 45,300 $1,359,000 0 $0 $1,565,353
Change in terms 2,350 $96,350 21,150 $634,500 0 $0 $730,850
Periodic statements 45,000 $1,845,000 405,000 $12,150,000 0 $0 $13,995,000
Error resolution 13,333 $546,653 120,000 $3,600,000 0 $0 $4,146,653
Transaction receipts 171,667 $7,038,347 1,545,000 $46,350,000 0 $0 $53,388,347
Preauthorized transfers 25,417 $1,042,097 228,750 $6,826,500 0 $0 $7,904,597
Service provider notices 2,917 $119,597 26,250 $787,500 0 $0 $907,097
Govt. benefit notices 42,167 $1,728,874 379,500 $11,385,000 0 $0 $13,113,874
ATM notices 116 $4,756 1,050 $31,500 0 $0 $36,256
Electronic check conversion 5,117 $209,797 46,050 $1,381,500 0 $0 $1,591,297
Payroll cards 50 $2,050 125 $3,750 0 $0 $5,800
............ ............ ............ ............ ............ ............ ............
Total Disclosures ............ ............ ............ ............ ............ ............ $97,385,124
Total Recordkeeping and Disclosures ............ ............ ............ ............ ............ ............ $107,825,124
--------------------------------------------------------------------------------------------------------------------------------------------------------
3. Regulation M
The CLA requires accurate disclosure of the costs and terms of
leases to consumers. The FRB promulgated Regulation M, 12 CFR 213, to
implement the CLA. Regulation M establishes disclosure requirements
that assist consumers in comparison shopping and in understanding the
terms of leases and recordkeeping requirements that assist enforcement
of the CLA. The FTC enforces the CLA as to all lessors and advertisers
except those that are subject to the regulatory authority of another
federal agency (such as federally chartered or insured depository
institutions).
Estimated annual hours burden: 225,000 hours, rounded to the
nearest thousand (120,000 recordkeeping hours + 104,875 disclosure
hours)
Recordkeeping: FTC staff estimates that Regulation M's
recordkeeping requirements affect approximately 120,000 firms within
the Commission's jurisdiction that lease products to consumers, at an
average annual burden of one hour per firm, for a total of 120,000
hours.
Disclosure: Regulation M applies to automobile lessors (such as
auto dealers, independent leasing companies, and manufacturers' captive
finance companies), computer lessors (such as computer dealers and
other retailers), furniture lessors, various electronic commerce
lessors, diverse types of lease advertisers, and others. Below is FTC
staff's best estimate of burden applicable to the wide spectrum of
these entities within the FTC's jurisdiction.
Regulation M: Disclosures--Burden Hours
--------------------------------------------------------------------------------------------------------------------------------------------------------
Setup/Monitoring Transaction-related
------------------------------------------------------------------------------------
Average Total Setup/ Average Total Total Burden
Disclosures Burden per Monitoring Number of Burden per Transactions (hours)
Respondents Respondent Burden Transactions Transaction Burden
(hours) (hours) (minutes) (hours)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Auto Leases\1\ 45,000 .75 33,750 2,000,000 .50 16,667 50,417
Other Leases\2\ 75,000 .50 37,500 750,000 .25 3,125 40,625
Advertising 20,000 .50 10,500 800,000 .25 3,333 13,833
Total ............ ............ ............ ............ ............ ............ 104,875
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ This category focuses on consumer vehicle leases. Vehicle leases are subject to more lease disclosure requirements (pertaining to computation of
payment obligations) than other lease transactions. (Only consumer leases for more than four months are covered.) See 15 U.S.C. 1667(1); 12 CFR
213.2(e)(1). This reflects a decrease in auto leasing entities and transactions, relative to prior FTC estimates.
\2\ This category focuses on all types of consumer leases other than vehicle leases. It includes leases for computers, other electronics, small
appliances, furniture, and other transactions. (Only consumers leases for more than four months are covered.) See 15 U.S.C. 1667(1); 12 CFR
213.2(e)(1). This reflects a decrease in consumer leasing entities and transactions, relative to prior FTC estimates.
[[Page 70352]]
Estimated annual cost burden: $5,349,618, rounded to the nearest
thousand ($2,088,000 recordkeeping cost + $3,261,618 disclosure cost)
FTC staff calculated labor costs by applying appropriate hourly
cost figures to the burden hours described above. The hourly rates used
below ($41 for managerial or professional time, $30 for skilled
technical time, and $16 for clerical time) are averages, based on
current Bureau of Labor Statistics cost figures.\10\
---------------------------------------------------------------------------
\10\ See note 8.
---------------------------------------------------------------------------
Recordkeeping: For the 120,000 recordkeeping hours, FTC staff
estimates that 10 percent of the burden hours require skilled technical
time and 90 percent require clerical time. As shown in the table below,
the total recordkeeping cost is $2,088,000.
Disclosure: For each notice or information item listed, FTC staff
estimates that 10 percent of the burden hours require managerial time
and 90 percent require skilled technical time. As shown in the table
below, the total disclosure cost is $3,261,618.
Regulation M: Recordkeeping and Disclosures--Cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
Managerial Skilled Technical Clerical
------------------------------------------------------------------------------------ Total Cost
Required Task Time (hours) Cost ($41/ Time (hours) Cost ($30/ Time (hours) Cost ($16/ ($)
hr.) hr.) hr.)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Recordkeeping 0 $0 12,000 $360,000 108,000 $1,728,000 $2,088,000
............ ............ ............ ............ ............ ............ ............
Disclosures ............ ............ ............ ............ ............ ............ ............
Auto Leases 5,042 $206,722 45,375 $1,361,250 0 $0 $1,567,972
Other Leases 4,063 $166,583 36,562 $1,096,860 0 $0 $1,263,443
Advertising 1,383 $56,703 12,450 $373,500 0 $0 $430,203
............ ............ ............ ............ ............ ............ ............
Total Disclosures ............ ............ ............ ............ ............ ............ $3,261,618
Total Recordkeeping and Disclosures ............ ............ ............ ............ ............ ............ $5,349,618
--------------------------------------------------------------------------------------------------------------------------------------------------------
4. Regulation Z
The TILA was enacted to foster comparison credit shopping and
informed credit decision making by requiring creditors and others to
provide accurate disclosure of the costs and terms of credit to
consumers. The FRB promulgated Regulation Z, 12 CFR 226, to implement
the TILA. Regulation Z establishes disclosure requirements to assist
consumers and recordkeeping requirements to assist enforcement of the
TILA. The FTC enforces the TILA as to all creditors and advertisers
except those that are subject to the regulatory authority of another
federal agency (such as federally chartered or insured depository
institutions).
Estimated annual hours burden: 12,415,413 hours, rounded to the
nearest thousand (1,000,000 recordkeeping hours + 11,415,413 disclosure
hours)
Recordkeeping: FTC staff estimates that Regulation Z's
recordkeeping requirements affect approximately 1,000,000 firms within
the Commission's jurisdiction that offer credit, at an average annual
burden of one hour per firm, for a total of 1,000,000 hours.
Disclosure: Regulation Z disclosure requirements pertain to open-
end and closed-end credit. The Regulation applies to various types of
entities, including mortgage companies; finance companies; auto
dealerships; student loan companies; merchants who extend credit for
goods or services, credit advertisers; and others. Below is FTC staff's
best estimate of burden applicable to the wide spectrum of these
entities within the FTC's jurisdiction.
Regulation Z: Disclosures--Burden Hours
--------------------------------------------------------------------------------------------------------------------------------------------------------
Setup/Monitoring Transaction-related
------------------------------------------------------------------------------------
Average Total Setup/ Average Total Total Burden
Disclosures\1\ Burden per Monitoring Number of Burden per Transactions (hours)
Respondents Respondent Burden Transactions Transaction Burden
(hours) (hours) (minutes) (hours)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Open-end credit: ............ ............ ............ ............ ............ ............ ............
Initial terms 90,000 .5 45,000 40,000,000 .25 166,666 211,666
Rescission notices 7,500 .5 3,750 400,000 .25 1,6665,416
Change in terms 20,000 .5 10,000 125,000,000 .125 260,416 270,416
Periodic statements 90,000 .5 45,000 3,500,000,00 .0625 3,645,833 3,690,833
0
Error resolution 90,000 .5 45,000 8,000,000 5 666,666 711,666
Credit and charge card accounts 50,000 .5 25,000 25,000,000 .25 104,166 129,166
Home equity lines of credit 7,500 .5 3,750 3,500,000 .25 14,583 18,333
Advertising 200,000 .5 100,000 600,000 .5 5,000 105,000
............ ............ ............ ............ ............ ............ ............
Closed-end credit: ............ ............ ............ ............ ............ ............ ............
Credit disclosures 700,000 .5 350,000 200,000,000 1.5 5,000,000 5,350,000
Rescission notices 75,000 .5 37,500 30,000,000 1 500,000 537,500
Variable rate mortgages 70,000 .5 35,000 2,000,000 1.5 50,000 85,000
High rate/high-fee mortgages 40,000 .5 20,000 500,000 1.5 12,500 32,500
[[Page 70353]]
Reverse mortgages 50,000 .5 25,000 175,000 12,917 27,917
Advertising\2\ 450,000 .5 225,000 900,000 115,000 240,000
............ ............ ............ ............ ............ ............ ............
Total open-end credit ............ ............ ............ ............ ............ ............ 5,142,496
Total closed-end credit ............ ............ ............ ............ ............ ............ 6,272,917
Total credit ............ ............ ............ ............ ............ ............ 11,415,413
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Generally, open-end and closed-end entities and transactions have decreased, but reverse mortgages have increased, relative to prior FTC estimates.
\2\ Advertising time for setup for open-end and closed-end mortgage transactions is estimated to increase based on new rules effective October 1, 2009,
but the number of transactions have decreased, relative to prior FTC estimates.
Estimated annual cost burden: $372,419,363, rounded to the nearest
thousand ($17,400,000 recordkeeping cost + $355,019,363 disclosure
cost)
FTC staff calculated labor costs by applying appropriate hourly
cost figures to the burden hours described above. The hourly rates used
below ($41 for managerial or professional time, $30 for skilled
technical time, and $16 for clerical time) are averages, based on
current Bureau of Labor Statistics cost figures.\2\
---------------------------------------------------------------------------
\2\ See note 8.
---------------------------------------------------------------------------
Recordkeeping: For the 1,000,000 recordkeeping hours, FTC staff
estimates that 10 percent of the burden hours require skilled technical
time and 90 percent require clerical time. As shown in the table below,
the total recordkeeping cost is $17,400,000.
Disclosure: For each notice or information item listed, FTC staff
estimates that 10 percent of the burden hours require managerial time
and 90 percent require skilled technical time. As shown in the table
below, the total disclosure cost is $355,019,363.
Regulation Z: Recordkeeping and Disclosures--Cost
--------------------------------------------------------------------------------------------------------------------------------------------------------
Managerial Skilled Technical Clerical
------------------------------------------------------------------------------------ Total Cost
Required Task Time (hours) Cost ($41/ Time (hours) Cost ($30/ Time (hours) Cost ($16/ ($)
hr.) hr.) hr.)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Recordkeeping 0 $0 100,000 $3,000,000 900,000 $14,400,000 $17,400,000
............ ............ ............ ............ ............ ............ ............
Open-end credit Disclosures: ............ ............ ............ ............ ............ ............ ............
Initial terms 21,167 $867,847 190,499 $5,714,970 0 $0 $6,582,817
Rescission notices 542 $22,222 4,874 $146,220 0 $0 $168,442
Change in terms 27,042 $1,108,722 243,374 $7,301,220 0 $0 $8,409,942
Periodic statements 369,083 $15,132,403 3,321,750 $99,652,500 0 $0 $114,784,903
Error resolution 71,167 $2,917,847 640,499 $19,214,970 0 $0 $22,132,817
Credit and charge card accounts 12,917 $529,597 116,249 $3,487,470 0 $0 $4,017,067
Home equity lines of credit 1,833 $75,153 16,500 $495,000 0 $0 $570,153
Advertising 10,500 $430,500 94,500 $2,835,000 0 $0 $3,265,500
Total open-end credit ............ ............ ............ ............ ............ ............ $159,931,641
............ ............ ............ ............ ............ ............ ............
Closed-end credit Disclosures: ............ ............ ............ ............ ............ ............ ............
Credit disclosures 535,000 $21,935,000 4,815,000 $144,450,000 0 $0 $166,385,000
Rescission notices 53,750 $2,203,750 483,750 $14,512,500 0 $0 $16,716,250
Variable rate mortgages 8,500 $348,500 76,500 $2,295,000 0 $0 $2,643,500
High-rate/high-fee mortgages 3,250 $133,250 29,250 $877,500 0 $0 $1,010,750
Reverse mortgages 2,792 $114,472 25,125 $753,750 0 $0 $868,222
Advertising 24,000 $984,000 216,000 $6,480,000 0 $0 $7,464,000
Total closed-end credit ............ ............ ............ ............ ............ ............ $195,087,722
............ ............ ............ ............ ............ ............ ............
Total Disclosures ............ ............ ............ ............ ............ ............ $355,019,363
Total Recordkeeping and Disclosures ............ ............ ............ ............ ............ ............ $372,419,363
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[[Page 70354]]
William Blumenthal,
General Counsel.
[FR Doc. E8-27534 Filed 11-19-08: 8:45 am]
BILLING CODE 6750-01-S
